About four years ago, when the Kremer-Glennerster purchase-commitment idea was germinating, Berkeley's Jean Lanjouw advanced a solution to the heart-pill problem. The idea would cost nothing: It merely involves drug companies giving up patent protection for heart pills and similar medicines in the poor world. Since poor countries buy almost none of these medicines anyway, giving up patent rights in those markets doesn't hurt the drug firms. But it would mean that cheap generic versions of these medicines could be distributed to poor consumers.

As well as costing nothing, the Lanjouw proposal would be simple to implement. It would require no multilateral negotiation, since it could be done with a modest fix to U.S. patent law. The fix would say that, as a condition of receiving patent protection in the U.S. market, the inventor of a drug must renounce patent rights in countries with a per capita income of less than, say, $1,000 per year.
 


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